You do not worry about how your bank is investing your money because your deposits are federally insured. This is an example of:
A. a positive spillover.
B. moral hazard.
C. adverse selection.
D. irrational behavior.
Answer: B
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"Your college didn't choose to admit you as a student." Your textbook authors make such a statement in order to
A) offend you. B) confuse you. C) remind you that beggars can't be choosers. D) emphasize that choices are made by particular individuals, even if they are in the name of organizations.
The cost of making an economic exchange is called a(n) ________ cost
A) sunk B) transaction C) social D) accounting
Changes in all of the following shift the LM curve except
a. the price level. b. income. c. the money supply. d. money demand. e. all of the above shift LM curve.
When the productivity of capital decreases, _____
a. the demand curve for capital shifts to the right b. the price of the good in which capital is used as a resource increases c. the supply curve for capital shifts to the left d. the equilibrium rental rate of capital decreases